BOJ keeps monetary policy steady

FXStreet (Mumbai) - On Friday the Bank of Japan (BOJ) decided not to make any changes to its current policy settings, keeping interest rates at around zero, and pledging to increase monetary base at annual pace of 80 trln Yen.

The central bank kept the monetary policy steady, instead choosing to wait and see if stronger economic growth helps to lift inflation to the 2% target.

BOJ also reiterated that Japan's economy continues to recover moderately while acknowledging that Japan’s housing investment exports have started picking. The central bank also noted in its policy that private consumption stands resilient.

BOJ cited developments in the emerging and commodity-exporting economies, debt issues surrounding Eurozone and concerns over pace of US economic recovery as key risks to the country’s economic outlook.

In a separate report, BOJ announced new framework, stating that BOJ will cut number of policy-setting meetings from next year and will release document containing summary of opinions presented at each policy meeting about a week after each meeting, effective in January 2016.

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